Broadcom Beats Estimates but Stock Is Falling After Hours

Broadcom beat analysts' fiscal first-quarter estimates and provided second-quarter revenue guidance ahead of forecasts.
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Shares of semiconductor maker Broadcom  (AVGO) - Get Report fell after-hours Thursday despite the company reporting fiscal first quarter results that topped estimates. 

The San Jose, Calif.-based company reported earnings of $6.61 per share on revenue that rose 14% year-over-year to $6.66 billion. Analysts were expecting earnings of $6.56 per share on revenue of $6.62 billion. 

"We executed well during our first fiscal quarter driving 14% organic growth year on year," said Hock Tan, Broadcom's President and CEO. "This growth reflects the critical role our technology franchises play in this environment of accelerated digital transformation."

For the fiscal second quarter, the company expects revenue to increase 13% from the year prior to $6.5 billion, ahead of consensus estimates of $6.33 billion. 

Shares of Broadcom were down 4.6% after hours to $423.00 after falling 4.2% intraday Thursday. 

Broadcom's board approved a quarterly dividend of $3.60 per share payable March 31 to shareholders of record on March 22. It also approved a quarterly cash dividend on its 8% mandatory convertible preferred stock, Series A, of $20 per share payable March 31 to shareholders of record on March 15. 

"What can I say? Why do we keep it? Because Hock Tan, the CEO, knows how to make money. And if he were running a worldwide widget company, I would probably buy that one, too. He even pays you a good dividend. He's a great steward," Jim Cramer recently said of the stock.

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